Canada A Top Investment Destination, Say Ministers

by Mike Godfrey, Tax-News.com, Washington

31 January 2012

Canada's ministers have been promoting the country's competitiveness and pro-trade plan at the World Economic Forum (WEF).

Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, together with Foreign Affairs Minister John Baird and Jim Flaherty, Minister of Finance, visited the WEF in Switzerland as part of the government’s wider plan to create jobs and growth at home.

According to Finance Department figures, Canada’s stock of foreign direct investment (in and out) in 2010 was equivalent to 74.6% of its gross domestic product. This figure is the third highest proportion in the G7.

Foreign-owned companies in Canada account for almost half of merchandise exports, one third of research and development (R&D) spending, and over one quarter of Canadian profits, revenues and capital investment. In addition, foreign direct investment has steadily increased over the years. In 2010 alone, inward investment was CAD14bn (USD13.96bn) higher than in the previous year.

The ministers also pointed out that in 2011, the government’s investment promotion efforts helped attract 95 new foreign businesses and expansion projects worth more than CAD16bn to Canada. More than 5,300 new jobs were created as a result.

Fast said: “With one in ten Canadian jobs linked to foreign investment, our government understands that attracting new investment creates jobs and prosperity for Canadian businesses, workers and families. Foreign investment brings innovation and new technologies and increases our competitiveness. With our strong banks, stable economy, business-friendly policies and strong commitment to free and open trade, our government continues to position Canada as an attractive destination for global investors.”

“As a trading nation, Canada considers that foreign investment is critical to creating jobs for Canadians and growing the Canadian economy,” Baird added. “Our government is working hard to create the conditions to attract investment, and in my travels I make sure to let other countries know the many reasons Forbes Magazine recently named Canada the best country in which to do business.”

Flaherty concluded: “The government of Canada has built a Canadian advantage by lowering taxes, promoting free trade and innovation and keeping government finances sustainable.Our bold action is positioning Canada as a low-tax investment destination. Canada’s Economic Action Plan, sound economic fundamentals and solid banking system helped Canada recover from the global economic crisis ahead of most industrialized countries.”

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